APPLIED INDUSTRIAL TECHNOLOGIES, INC. vs TE CONNECTIVITY PLC, two Distribution stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Despite sharing a sector label, Applied Industrial distributes parts while TE Connectivity manufactures the connectors and sensors themselves, and the margin gap shows it: TE nets 15.54% against Applied's 8.34%, maker economics against middleman ones. TE earns a similar return on equity, 21.96% against 21.71%, but on far higher margins, and trades cheaper, 20.2 times earnings against Applied's 31.8, while converting more free cash, 5.81% against 3.46%. Both carry modest debt. The pair really compares two different businesses: TE owns the product and the margin that comes with making it, Applied earns a distributor's thinner slice moving other companies' goods, and TE's combination of higher margins and a lower multiple makes it the stronger value.
Comparison updated 2026-07-11.
| Metric | AIT | TEL |
|---|---|---|
| Price | $336.94 | $198.01 |
| Market cap | $12.7B | $58.4B |
| Sector | Distribution | Distribution |
| Stage | Mature | Growth |
| Implied growth (priced in) | — | +18.7% |
| P/E | 31.8 | 20.2 |
| P/B | 6.83 | 4.41 |
| P/S | 2.62 | 3.12 |
| EV/EBITDA | 23.4 | 15.2 |
| Revenue growth | +7.6% | +16.7% |
| Gross margin | 30.4% | 36.8% |
| Operating margin | 11.0% | 20.1% |
| Net margin | 8.3% | 15.5% |
| Return on equity | 21.7% | 22.0% |
| Return on assets | 13.5% | 11.3% |
| Return on invested capital | 17.4% | 17.7% |
| FCF yield | 3.5% | 5.8% |
| Dividend yield | 0.5% | 1.4% |
| Debt / equity | 0.20 | 0.43 |
| Current ratio | 2.95 | 1.89 |
| Altman Z (solvency) | 9.46 | 4.64 |
| Piotroski F (quality) | 8 / 9 | 6 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.